FEI’s Committee on Government Business (CGB) and Committee on Taxation (COT)  jointly signed onto a letter of support for H.R. 6242, legislation recently introduced by Congressman Wally Herger (R-CA).  As drafted, the legislation would eliminate the mandatory 3 percent withholding tax on payments made from federal, state and local government entities for goods and services. This provision was recently enacted as part of the Tax Reconciliation bill signed by President Bush in May.